Osaka Gas Buys Stake in Texas Shale Project

Osaka Gas will pay $249 million for a 35 per cent stake in a Texas shale gas and oil project run by Cabot Oil & Gas Corp.

Reuters said in a report that Osaka Gas’ stake is estimated to be worth 250,000 tonnes a year of LNG equivalent of natural gas, light crude oil and natural gas liquids when output stabilises.

Drilling is set to start in July and the project, aimed at the U.S. market, is expected to run about 30 years.

Osaka Gas has said it keeps eyeing LNG projects in Australia and non-conventional gas in North America to help lower its LNG procurement costs in Asia, Reuters reported.